THE ESTABLISHMENT AND OPERATION OF AN

AUTOMOTIVE SHOP IN KORONADAL CITY

INTRODUCTION

What do drivers usually do when their vehicle has damage? Drivers are worried sick when their vehicle
has damage. They usually go to automotive shops and have their vehicle be repaired. But some shops
can’t afford to repair all the damages. Cars and auto vehicles should undergo regular services to make
sure they are still roadworthy.

Nowadays, many people prefer to use their own cars, motorcycles and other vehicles to their daily life.
Personal vehicle provide comfort while travelling. To illustrate, a person who owns a vehicle not only
can plan destination but also has a freedom to travel. Moreover, people find private transportation is
more reliable and faster way to travel which is more profitable in this fast moving era. Aside from that,
the owner has a right to control their time whether they go now or later.

According to Merriam Webster’s online dictionary, automotive is define as moved by a self-contained

motor or engine or something that has to do with automobiles. A car is an example of something that is
automotive. Vehicles are designed to suit a range of different purposes; long distance travel,
commuting, transporting goods, sport racing, and off road riding.

Automotive shop owners engaged in rendering services such as; breaks, oil damages, alignments, which
are the common problems of the vehicles. Drivers would choose an automotive shop that has the
complete services than those who do not. Drivers would also like not just the services but also the spare
parts and some materials. Automotive shops also impart great responsibility to the drivers’ vehicles,
drivers’ lives and also to the passengers’. People usually use vehicles going to work, school and traveling,
whether tricycles, motorcycles, cars and huge tracks. Drivers and passenger would benefit from the
services an automotive shop serves.

Koronadal City is the best place to establish automotive shop. Opening an Automotive shop located near
the local market provide access to the drivers, vehicle owners, travellers passing by and especially the
Public Terminal is located in Koronadal City. The purpose of this study seeks to decide on the feasibility
of opening an automotive shop in Koronadal City. It was noticed that there were few shops who serve
great services. Most shops had only reduced small services like; brakes, oil changes, alignments; which
are most of the customers trying to find shops with lots of services. This Feasibility study of establishing
an automotive shop will specialize in paintwork repairs to scratches, scuff, dents, auto glass repair, and
air conditioning repair. Also involved in design are marketing, and selling auto parts. A one stops shop
for all automotive repairs to meet every customer’s need.

The concept of land transportation system in the Philippines started when our ancestors invented the
means of locomotion with the animals in moving people and goods from place to place. Although the
means of land transportation during the early days were not as sophisticated as the modern vehicles of
today and the roads not as well constructed, the early Filipinos also observed some laws to govern their
mobility. These laws were as informal and simple as specifying which animal could be used for certain
purposes but these showed that our ancestors had already felt the need to regulate the transportation
system.

As early as 1910, there were already few motor vehicles seen operating in public highways in Manila and
suburbs.

Better means of transportation were invented and introduced in the country. Gradually,the Filipinos
learned to use cars, trucks, jeeps and other types of vehicles.The meansof transportation became better
and powerful and the laws governing land travel became more formal and modern.

On February 6, 1912, Legislative Act No. 2159 was enacted to regulate motor vehicles in the Philippine
Islands and to provide for the regulation and licensing of operators. This was the first formal law on land
transportation passed by the legislature.This law created an Automobile Section under the
Administrative Division of the Bureau of Public Works. The Section was tasked to take charge of motor
vehicles and drivers’ services.

Later on, Legislative Act 2159 was amended by 2389, 2556, 2587, 2639 and 2925. In 1922, Act No. 3045
was passed into law compiling and incorporating all laws governing motor vehicles.The Automobile
Section was upgraded to the Automobile Division under the Bureau of Public Works.

On January 1, 1933, Act No. 3992 otherwise known as “The Revised Motor Vehicle Law” was enacted
amending Act No. 3045.The Automobile Division was renamed Division of Motor Vehicles.The Chief of
the Division was called the Superintendent of Division of Motor Vehicles.Act No. 3992 was amended by
Commonwealth Act Numbers 123, 548, 556, 652 and Republic Act Numbers 314, 587, and 2383.

On June 2, 1945, Department Order No. 4 was issued by the Department of Public Works and Highways
reorganizing the Division.This took effect after the liberation of the Philippines from the Japanese
invasion.In 1947, Executive Order No. 94 was promulgated reorganizing the different executive
departments, bureaus and offices. Under Section 82 of this E.O., the Division of Motor Vehicles was
upgraded into the Motor Vehicles Office (MVO) with the category of a Bureau.The Chief of the MVO
enjoyed the rights and privileges of a Bureau Director.

During the fifties and early sixties, our country started undergoing rapid economic
development.Industrialization advanced and as a consequence, more and better roads were
constructed.The Filipino then realized the need for more and better means of transportation. This need
was second only to the need for drugs such as sovaldi. The growth in the number of motor vehicles
increased the demand for services that the MVO must render to the public.This necessitated the
issuance by the DPWH on June 5, 1961 of Administrative Regulation No. 1 transferring the function of
collecting the registration fees from city treasurers to the various vehicle agencies of MVO.

On June 20, 1964, R.A. 4136, otherwise known as the “Land Transportation and Traffic Code” was
enacted abolishing the Motor Vehicle Office and creating the Land Transportation Commission.This law
likewise partially repealed Act No. 3992. The Code provided that the Land Transportation Commission
shall “control as far as they apply, the registration and operation of motor vehicles and the licensing of
owners, dealers, conductors, drivers and similar matters.”To effectively carry out its mandate, the Land
Transportation Commission established regional offices in various parts of the country.

On July 23, 1979, Executive Order Number 546 was promulgated creating the Ministry of Transportation
and Communications (MOTC).This marked reorganization.The Land Transportation Commission was
renamed Bureau of Land Transportation and was absorbed by MOTC.

On June 2, 1980, Batas Pambansa Bilang 43 was passed providing for the issuance of permanent number
plates to owners of motor vehicles and trailers, amending for the purpose section 17 of RA 4136.

On March 20, 1985, Executive Order 1011 was promulgated.This Executive Order abolished the Board of
Transportation and the Bureau of Land Transportation and established the Land Transportation
Commission.The defunct BLT and BOT were merged and their powers, functions and responsibilities
were transferred to the Land Transportation Commission (LTC) headed by a Chairman, assisted by four
Commissioners.The LTC was tasked to perform functions such as registering motor vehicles, licensing of
drivers and conductors, franchising of public utility vehicles and enforcing traffic rules and regulations
and adjudicating apprehensions. On January 30, 1987, the Land Transportation Commission was
abolished and two offices were created, namely:The Land Transportation Office (LTO) and the Land
Transportation Franchising and Regulatory Board (LTFRB).The LTO took over the functions of the former
BLT and the LTFRB took over the functions of the former BOT. The MOTC was likewise renamed DOTC.

All these changes took effect with the promulgation of Executive Order No. 125 which was later
amended by Executive Orders No. 125-A dated April 13, 1987 and E.O. 226 dated July 25, 1987. Despite
the changes in names of Office and all the reorganizations that took effect, its basic functions on land
transportation system remain the same.The promotion of safety and comfort in land travel is its
continuing commitment. When Executive Orders 125, 125-A and 226 were promulgated, LTO was
composed of only thirteen (13) regions.As time went on, additional regions were created, namely: CAR,
CARAGA and MIMAROPA.While CAR and CARAGA are attached to the DOTC, they report to LTO Central
Office on matters of registration of motor vehicles, issuance of driver's licenses and enforcement of land
transportation laws, rules and regulations.

The LTO is now composed of the following regions:

Region I - Aguila Road, Brgy. Sevilla, San Fernando City, La Union

Region II - San Gabriel, Tuguegarao, Cagayan

Region III - Government Center, Brgy. Maimpis, City of San Fernando, Pampanga

Region IVA - J. C. Abadilla Memorial Bldg., Old City Hall Compound, B. Morada Ave., Lipa City Batangas

Region IVB - MIMAROPA – LTO Compd., East Avenue, QC.

Region V - Regional Govt. Center Site, Rawis, Legaspi City

Region VI - Tabuc-Suba, Jaro, Iloilo City

Region VII - Natalio Bacalso Avenue, Cebu City

Region VIII – Old Army Road, Tacloban City

Region IX - Veterans Ave., Zamboanga City/Balangasan St., Pagadian

Region X - MVIS Compound, Zone 7, Bulua, Cagayan de Oro City

Region XI - Quimpo Blvd., Davao City

Region XII - ARMM Compound, Cotabato City/No. 79 G. Del Pilar St., Koronadal City, South Cotabato

National Capital Region (NCR) – #20 G. Araneta Avenue, Brgy. Sto Domingo, Q.C.

Cordillera Administrative Region (CAR) - Engineer’s Hill, Baguio City/2nd Flr., Post Office Loop, Session
Road, Baguio City

CARAGA - J. Rosales Avenue, Butuan City

The volume of transactions at LTO has grown so fast without increasing the manpower, hence to meet
the public’s demand, LTO introduced the computerization of its transactions sometime in 1998.To date,
almost all LTO Offices are computerized except those with manpower, telecommunications and security
issues.

Significant of the Study

The feasibility study on establishing an Automotive Shop in Koronadal City will be useful to the vehicle
owners to fix their vehicle’s damage. This study will give them awareness, understanding and ideas on
the services of automotive shop.

To the customers who are worried sick to the damages of their vehicles, this study will aware them on
choosing a shop which are affordable yet with great services.

To the researcher, this study will give them understanding that can be use in their profession and
personal lives.

The important of this study to the Marvelous College of Technology, Inc. teachers, students, admin and
to our society is that this gives knowledge what kind of services one may offer to customer in order to
satisfy the need and wants. It is beneficial to many people especially in any incident like broken brakes,
or broken cars.
To future researchers, this study will give guidance and facts of collecting data’s to know if the result will
be feasible or not.

STATEMENT OF THE PROBLEM

This study of establishing an automotive shop aims to:

Determine the demand of Automotive shop in the City of Koronadal.

Describe the establishment of Automotive Shop in terms of management, marketing, financial,

operational, and socio-economic impact.

Identify the strength, weaknesses, opportunities, threats of the Automotive Shop.

Success factor.

DEFINITION OF TERMS

Vehicle- thing used for transporting people or goods, especially on land, such as a car, truck, or cart.

Synonyms: automobile, motor vehicle, motorized vehicle, means of transport, conveyance, and
machine.

Automotive Shop- relating to cars or the business of making, selling, or repairing cars, and a place where
you can buy goods or services.
Services- the action of helping or doing work for someone, or a system supplying a public need such as
transport, communications, or utilities such as electricity and water.

Synonyms: act of assistance, good turn, favour, kindness, helping hand.

Automobile- a road vehicle, typically with four wheels, powered by an internal combustion engine or
electric motor and able to carry a small number of people.

Operation- the fact or condition of functioning or being active.

Synonyms: functioning, working, running, performance

Establishment- the action of establishing something or being established.

Synonyms: setting up, start, getting

going, initiation, institution, formation, founding, foundation, inception, creation, inauguratio

n, organization, building, construction, installation.

LOCALE OF THE STUDY

The researchers will conduct a study in Zone 1,2,3, and 4 of Koronadal City. The researchers will gather
data and information at